Target Information

Stirling Square Capital Partners ("Stirling Square"), a prominent pan-European mid-market private equity firm, has finalized the sale of Siblu Villages ("Siblu" or "the Company") to Naxicap Partners ("Naxicap"). Siblu is recognized as the leading operator of owner-occupied holiday villages in France, managing 22 holiday villages across France and the Netherlands, which include approximately 11,700 available pitches.

During the four years of Stirling Square’s ownership, the firm significantly enhanced Siblu's presence in the French market through the acquisition of five parks and five plots of land, while also expanding into the Dutch market with two additional park acquisitions. This strategic expansion resulted in a remarkable 45% growth in pitch capacity, accompanied by notable improvements in pitch yield management across all properties. Since Stirling Square's acquisition in August 2015, Siblu's EBITDA has nearly doubled, increasing from €20 million at the time of purchase to €39 million at the point of sale.

Industry Overview

The holiday village industry in France is thriving, characterized by strong domestic and international tourism. As one of the most popular tourist destinations in the world, France attracts millions of visitors each year, which fosters a robust market for holiday accommodation options. This sector not only provides leisure activities but also serves a growing segment of owner-occupied holiday properties, appealing to families looking for vacation homes.

In recent years, France has seen a notable shift in consumer preferences towards outdoor and nature-centric experiences, which aligns with the offerings provided by holiday villages. The demand for such accommodations is bolstered by a desire for flexibility, affordability, and the allure of shared community spaces.

Concurrently, the Dutch market complements this trend, with an increasing number of Dutch consumers showing interest in holiday properties in France. This cross-border interest creates substantial opportunities for growth in the owner-occupied holiday village segment as more families seek holiday homes that offer comprehensive facilities and communal amenities.

Overall, the industry is positioned for ongoing growth as it adapts to changing consumer behaviors and preferences, providing an attractive landscape for continued investment.

The Rationale Behind the Deal

The sale of Siblu to Naxicap aligns with Stirling Square's strategy of enhancing portfolio companies’ value through rigorous operational improvements and strategic market expansions. The transformation and substantial growth achieved during Stirling Square’s stewardship illustrate the Company's position as a prime asset within the holiday villages sector.

This divestiture allows Stirling Square to capitalize on the value created during its ownership, while also enabling Naxicap to further develop Siblu’s growth trajectory. With Naxicap's resources and expertise, Siblu is poised to navigate new growth opportunities and consolidate its market-leading position in both France and the Netherlands.

Investor Information

Naxicap Partners is a prominent investment firm that specializes in mid-market private equity across various sectors. Known for their strategic focus and operational expertise, Naxicap seeks to partner with growing companies to support their expansion and enhance their operational efficiencies. Naxicap’s robust platform is expected to provide Siblu with the necessary tools and resources to continue its growth in the holiday village market.

The firm has a track record of successfully managing and developing portfolios, which positions them well to leverage Siblu’s existing market leadership while exploring new avenues for growth and value creation.

View of Dealert

From an investment perspective, the sale of Siblu by Stirling Square to Naxicap appears to be a strategic move that could yield positive outcomes for both parties involved. Stirling Square's ability to nearly double Siblu's EBITDA within four years demonstrates effective management practices and successful market expansion strategies, indicating that the firm has set a solid foundation for its future growth.

Naxicap, with its extensive resources, can further capitalize on Siblu's current successes by deepening market penetration and pursuing additional strategic acquisitions. The active growth phase within the holiday village sector, combined with current consumer trends favoring outdoor leisure experiences, can facilitate even greater profitability and operational efficiencies under Naxicap's stewardship.

However, it is crucial for Naxicap to maintain the momentum established by Stirling Square and not lose sight of the operational improvements that have made Siblu a market leader. Effective management and an emphasis on continued innovation will be key determinants in ensuring the investment is a success.

Overall, this investment has the potential to be fruitful for Naxicap, provided that the firm stays aligned with evolving market dynamics and continues to enhance the operational performance of Siblu Villages.

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